Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report 49 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 49 - Asset Category Target Allocation Geometric Expected Return Core Bonds 20.0% 4.90% Broad US Equities 10.0% 7.60% Large Cap US Equities 13.0% 7.50% Small Cap US Equities 2.0% 7.75% Developed Foreign Equities 22.0% 7.50% Emerging Market Equities 4.0% 8.25% Private Equity 7.0% 8.75% Real Return 3.0% 6.00% Real Estate (Property) 13.0% 7.00% Commodities 6.0% 5.25% Sensitivity of the Net Pension Liability to Changes in the Discount Rate –The following presents the Department’s proportionate share of the net pension liability of SCERS, calculated using a discount rate of 7.50%, as well as what the Department’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher (8.50%): ($ in millions) 1.00% Decrease 6.50% Current Discount Rate 7.50% 1.00% Increase 8.50% Employer’s proportionate share of the Net Pension Liability $375.1 $271.8 $185.0 Plan Fiduciary Net Position – Detailed information about the SCERS’s fiduciary net position is available in the separately issued, audited financial statements as of December 31, 2014, which are publicly available at http://www.seattle.gov/retirement/about-us/financials-and-governance. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension – For the year ended December 31, 2015, the Department recognized pension expense of $29.5 million. As of December 31, 2015, the Department reported deferred outflows of resources as follows: ($ in millions) Deferred Outflows of Resources Differences between expected and actual experience $ - Changes of assumptions - Net difference between projected and actual earnings 8.5 Contributions made subsequent to measurement date 24.9 Total $ 33.4 Department contributions subsequent to the measurement date of $24.9 million are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Contributions made in 2015, along with the net difference between projected and actual earnings reported as deferred outflows of resources will be recognized as pension expense in the